‘Advocacy has to come from within’: Why advisers need to help grow the profession

With a seemingly never-ending stream of reviews, legislative reform and levy increases, there has been no shortage of cause for negativity within financial advice in recent years.

Throw in large-scale financial failures like Dixon Advisory, United Global Capital, and the latest involving Shield and First Guardian – all of which will raise costs through the Compensation Scheme of Last Resort – and it’s hard to blame advisers for not wanting to sing the praises of working in the sector to prospective new entrants.

However, according to My Dealer Services director Alex Euvrard, financial advisers need to stop being so “focused on the negativity”.

“There are bad actors in any industry – I don’t even want to start on the building industry, but we just seem to be so focused on the negativity,” Euvrard said.

“When I talk about industry-wide advocacy, I challenge advisers from the ground up. That’s how it has to be done.”

This advocacy, he explained, needs to cover the whole spectrum – from chatting with people at barbecues to engaging with politicians – to improve the profession and boost adviser numbers.

That second area is key, with Euvrard arguing that advisers who look at the current landscape and see high levels of demand as a positive are being “a little bit short-sighted”.

“I think advisers largely are, a little bit through choice, a little bit blind to the actual problem this creates, and that’s because they’re existing in an industry where they’re all actually doing quite well at the moment,” he said.

“Demand has never been higher; supply has never been lower.”

Looking at the bigger picture, he said bringing in new advisers – particularly younger advisers, as they can bring “new ideas and innovation” – is necessary to keep the profession alive.

While implementing the proposed education pathway changes is a “starting point”, the sector also needs to present a united voice advocating for advisers.

“The industry just needs common advocacy. We can’t keep having several voices from several different places and vested interests,” Euvrard said.

“From the outside looking in, we are a dog’s breakfast. Stephen Jones was right when he talked about the hot mess. The shame about all of this is from the outside … from the inside, the industry does nothing but help people.

“It does nothing but bring good to people’s lives, retirement, monetary goals, all of this. What we’re being seen as is the complete opposite to what we’re all doing each and every day.

“So, common advocacy has to come from within the industry. We’ve obviously got the spokespeople and the spokes bodies in the associations. But I’m going to challenge advisers and individuals. It has to come from them as well.”

What does adviser advocacy look like?

The answer, Euvrard said, requires an “all-inclusive approach” centred on having pride in the profession.

“Make no mistake, we say that we’ve got 15,000 registered advisers, the reality is that in financial advice, it’s closer to 11,000,” he said.

“If we all marched to Canberra, we wouldn’t sway a council election, let alone have this federal impact we’re all talking about.

“When I say all inclusive, and this is where I challenge advisers, it’s actually bringing pride back to the industry, about what you do, about how you help people, and having that overall angle from the inside out.

“It pains me to say this, but we all know advisers who at barbecues will not say that they’re a financial adviser just because of what it creates, or the questions, or whatever they read. Whatever the reason is, it’s fundamentally wrong for an industry that does nothing but help people.

“This is why I talk about all inclusive. Whether it’s your local member, whether it’s the associations who represent members, but I’m actually talking everybody.”

While he doesn’t expect things to change overnight, Euvrard said it’s all about positive advocacy.

“It happens through adviser stories, through client stories. It is going to happen through the bigger industry funds getting into advice, and people seeing what advice is.

“They will understand that it is a mapping-type situation. It’s based on strategy, it’s based on outcomes and it’s based on personal goals.

“I think everything starts with education, and it’s going to take advocacy and education.”